CAPITAL PROJECTS: In fiscal 2012, management completed its 29
independent living unit expansion, additional parking, and wellness
center project on-time and on-budget. Management is now embarking on a
new independent living campus project (totaling 96 ILUs built in three
phases) four miles from Moorings Park's main campus with limited
financial risk and upfront cost to the organization, which Fitch views
favorably.

FAVORABLE SERVICE AREA CHARACTERISTICS: Moorings Park has a long
operating history of serving a niche market of affluent residents in
Naples, FL dating back to 1981. Additionally, Naples, FL. is viewed as a
retirement destination, which enables Moorings Park to draw residents
from beyond its local area.

The rating affirmation of 'A+' is supported by Moorings Park's excellent
financial profile and solid demand for services located in Naples, FL.
In fiscal 2012 (unaudited), Moorings Park had $151.8 million in
unrestricted cash and investments, which equated to 1,230.5 days cash on
hand, 27x cushion ratio, and 154.5% cash to debt. These metrics compared
favorably against Fitch's 'A' category medians of 494.8 days, 14.4x, and
120.2%, respectively. However, Fitch views Moorings Park's strong
unrestricted liquidity position as necessary given its aggressive debt
profile.

Through the same period, Moorings Park recorded $6 million in operating
income, which led to a 97.7% operating ratio and 36.8% net operating
margin-adjusted and marked another year of solid, consistent
profitability. The organization's good profitability along with enhanced
occupancy generated robust debt service coverage (turnover entrance fees
only) of 5.9x, which compared favorably against Fitch's median of 2.7x.
The strong financial performance continues to be driven by Moorings
Park's long history in the market place of providing lifecare services
to a very affluent population base. Over the past five years, occupancy
has been solid averaging 91.6% in ILUs, 95% in assisted living units
(ALU), and 91.2% in skilled nursing.

In October 2012, Moorings Park opened its new 29 ILU expansion project
with no interruptions, which Fitch views favorably. Management is now
undertaking plans for a new campus project, Moorings Park at Grey Oaks
(Grey Oaks), which will consist of 96 new ILUs built in three separate
32-unit phases over three years. Management will only move forward with
the second and third 32-unit phases if each preceding phase is
successful. The project will be funded entirely by a local real estate
developer and Moorings Park will only be responsible for marketing
costs. During each construction phase, Moorings Park will have a goal of
reaching 80% presales (26 units) before beginning construction. After
successful fill-up of each unit phase, Moorings Park will become the
owner of the new unit expansion with no associated debt. If the ILU
expansion is successful, management will consider adding an assisted
living/memory care space consisting of 16 ALUs and 48 memory support
units. There could be additional debt associated with this project;
however, since this project is very preliminary, Fitch will evaluate the
capital plans and the impact to the rating, if any, when the plans are
finalized.

STABLE RATING OUTLOOK

The Stable Rating Outlook reflects Fitch's expectation that Moorings
Park will maintain its excellent financial profile and solid occupancy
levels while embarking on the Grey Oaks project, which should have
limited financial downside.

OUTSTANDING DEBT PROFILE

Total outstanding debt was $98.2 million as of Dec. 31, 2012. Fitch
views Moorings Park's debt profile as aggressive with nearly 75% of
outstanding debt in variable-rate demand bonds (VRDBs). Moorings Park's
series 2000, 2005, and 2008 bonds are backed by JPMorgan LOCs and the
organization also has a $24.7 million direct bank loan with JPMorgan
with an initial term till 2020. Moorings Park has one floating- to
fixed-rate swap for a notional amount of $28.7 million and there are no
collateral requirements. Overall, Fitch believes Moorings Park's debt
profile exposes the organization to counterparty, put, remarketing, and
interest rate risk. However, Fitch believes Moorings Park's strong
balance sheet mitigates this concern.

ORGANIZATIONAL OVERVIEW

Moorings Park is a type-A continuing care retirement community located
in Naples, FL. The community consists of 384 independent living units,
73 assisted living units, and 106 skilled nursing beds. In the year
ended Dec. 31, 2012 (unaudited), Moorings Park had total revenues of
approximately $62.8 million. Moorings Park covenants to provide annual
and quarterly financial statements to bondholders.

Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE.